Reference no: EM131675584

Question: Carlos and Suzanne Cortez filed their petition for bankruptcy on April 8, 2004. At the time of fi ling, Suzanne Cortez was working, but Carlos was unemployed. Suzanne had reduced her work hours so that her minimum net income per month was $750. Carlos accepted a job offer a few days after the fi ling of the bankruptcy petition that netted him $5,986 monthly. The Cortez's new combined net income was $6,646 per month, which exceeded their expenses by $1,325 per month. The trustee appointed to the Cortezes' case moved to dismiss their petition because it appeared that the debtors had the means to repay a substantial portion of their debts plan. The bankruptcy court denied this motion and ruled that it was limited to reviewing the Cortezes' fi nancial circumstances as they existed when the petition was fi led and that postpetition events could not be taken into account in determining the proper chapter under which the petition should have been fi led. The trustee appealed the decision to the U.S. district court. How should this case be decided on appeal? Should postpetition events, especially those occurring within a few days of the fi ling, be relevant to the determination of whether a petition was properly filed? Why or why not?